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Credit Cards and Incarceration
I had 2 credit cards, one with Capital One and one with Wells Fargo. Never missed a payment. I was incarcerated in August 2013 and subsequently, missed all remaining payments. Capital One left a $5000 balance and Wells Fargo $2000. Both accounts now are "Closed - Derogatory" and written in the remarks both say "Charged off bad debt and profit loss write off."

I am confused about the following. No one has attempted to collect these debts. They have not been sent to collections. On my credit report, it says 100% of payments on time and 0 derogatory remarks, which I do not understand.

Capital One has not sent any letters at all. Wells Fargo sent a letter about a year ago asking to settle for 50%. Other than that, neither of the 2 credit cards have been sent to any collection company. Both accounts were closed in the beginning of 2014. On my credit karma report, they both are still reporting and last date of report was March 2017 for both of them.

I am unsure how to proceed. Despite these 2 accounts, my credit score from Equifax and Transunion is hovering in the low 700 range. That is most likely due to the fact that I have a $30,000 card with no balance and a $18,000 card with no balance as well as loans that have been paid off on time. The problem came with my incarceration. I am wondering if Capital One knows I was incarcerated and gave up? Is that possible? I have heard of collections companies coming after people for $600 before, so I am unsure why I haven't been bothered or hassled at all for $5000.

If anyone has any advice on how to proceed I would appreciate it. I read mixed reviews on what to do, some say to pay it some say don't pay it because the damage is already done. I was unable to pay it for over 3 years due to incarceration which they can verify and I am not sure if that is what happened or not. I just don't want to come home and find out they were waiting for my release and then sue me for the entire thing.

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Why there is lack of collection activities? That answer is with-in your post... "... Charged-off bad debt and profit loss write off..." The creditors took tax write off and not pursuing you any further. Both entries can remain on your report for 7 year from Date Of First Delinquency, you are free to dispute it, but do bear in mind that the disputing process is meant for people to correct the inaccuracies in their report and not a convenient way to removed things they don't like, so the end result would be ymmv.

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